Economic life under Spain

By: Michelle Ann Ramel and James Prae

Liclican

Economic life Under Spain

Slow development under Spain• The slow progress was due to the lack of

Spain in practical matters.• Their interest was in Catholicism and their

dream of having an empire in Asia.• Spaniards did not really know how to make

money grow.• While we were a colony of Spain, the Filipinos

did not really share in the wealth of the nation.

Economic Changes made by Spain.

• New way of land ownership• Encomienda system• Tribute• Polo or forced labor• Abolition of slavery• Galleon Trade and annual

subsidy from Mexico• Introduction of new plants

and animals

• Introduction of new industries• Economic society and royal

company• Specific survey• Opening of the Philippines to

world trade and foreign investments

• Rise of banks• Improvement on transport and

communication• Prizes and international

exhibitions

New way of land Ownership

Spaniards introduced the

idea that the person and his

family could own a land.

Tribute

• The residence tax during the Spanish times• One Peso per year• Single person should pay

one-half peso.• In cash or in good.• 1884-tribute was replaced

by cedulla tax

• People in the Philippines were very unhappy with these taxes because the Spanish officials cheated and oppressed them• Today, Filipinos of 18

years and above still pay the cedulla in their local town or city. In exchange, they are given a “residence certificate”.

Encomienda

• Money from the tribute upon a certain conquered territory.

• Given by the king to a Spanish conquiscator (colonizer) as a reward for his services.

Encomiendas

• Owner of the encomienda.• Encomiendas can keep the tribute for

himself instead of giving it to the government.

• 1951-267 encomiendas in the Philippines.

• Due to abuses, it was abolished in 16th century.

Polo or forced labor

• 16-60 years old male Filipinos were forced to work for the government for a few weeks a year 40 days• 1884- Reduced to 15 days• Polistas- forced labourers• Polistas worked for various public works.• Polistas could get out of work by paying a sum of money or hiring

somebody else to do his polo• Filipinos did not like polo

Abolition of Slavery

• 16th century- Spanish missionaries protested to the King about keeping of slaves in the Philippines.• 1589- royal decree was

made • Abolish slavery in our

country• Philippines were ahead of

other countries in giving freedom to slaves.• United States did not ban

slavery ban slavery until 1833.

Galleon Trade and Subsidy from Mexico

Galleon Trade and Subsidy from Mexico• Named after the sailing

ship which sailed once a year from Manila to Acapulco Mexico.

• Profitable business for Spanish Merchants and corrupt government who ran it.

• 1815- It ended when Mexico revolted against Spaniards.

Spanish colonial Government

Cannot afford to pay for its

expenses (salaries and public

works) and always-needed

money to keep on running, so

the king sent financial aid to

manila very often.

Royal subsidy

• Financial aid• From the Mexican viceroy because Spain ruled us through Mexico until the early 19th century.• ₱250.00- the average amount of subsidy• It ended on 1810 after the Mexican evolution.

Introduction of new plants and animals

• Among these new plants were corn, cacao, beans, achuete, maguey, peanuts, Chico, and papayas•New animals included sheep, cattle, goats, horses, pigeons, swans, carabaos, ducks, geese, and better breeds of chickens and roosters.

Introduction of New industries

• Better methods of farming: cattle ranching, making candle and soap.

• The construction of stone houses, building of roads, bridges, and dams.

• The weaving of mats and hats.• They grow large amount of sugar,

hemp, coconut, and tobacco.• Become the pillars of the Philippines.

Economic Society and Royal Company

Economic society of friends of the Philippines

• Existed only during Spanish era.• 1781 founded by Governor General

Basco.• Governor General Basco helped

develop Philippine agri-cultural the most.

• Sent the first shipment of indigo (dye) to Europe.

• Brought special birds from china to fight the locusts that destroyed crops.

• Gave special prizes to planters and investors.

• Imported seeds and machinery from United States to help farmers.

• 1809 economic society stopped operating

Royal company of the Philippines• 1785, king Charles III • Took advantage of the trade and

shipping industries.• Owned by king, foreign banks,

private citizens in Spain, Mexico, Cuba, the Philippines and other Spanish colonies

• It is badly manage so it was closed down on 1834

Two interesting economic organization

Scientific survey

• 1789- First scientific survey of the Philippines was done by the Spaniards under the command of the captain Alijandro Malaspena.

• Two ships sailed around the archipelago and explored the coasts

• Antonio Pineda a botanist went with the expedition they studied the Philippine plants.

• From this expedition came this first modern shipping chart of the map of the Philippines.

Opening doors to the world trade and foreign investment

• In 1834, Spain officially opened the Philippines to the world trade.

• It means that the goods from the Philippines could be shipped out to any of the countries abroad.

• And goods from other country could enter the Philippines directly.

• Before Spanish banned the other foreigners from living in the provinces or having businesses in the Philippines.

• They did not apply to Chinese settlers, but it covered other white men.

“A dollar earned by the foreigner was taken from the pocket a of a Spaniard”

• 19th century foreign businessman were allowed to do business in manila and other places in the country.

• American and European traders came and opened new business in the Philippines.

• In 1859,15 foreign companies in manila.• Seven British, two French, two Swiss one German.• Nicolas Coney Plymorth England.• First foreign merchant to live in Visayas.• 1855 he arrived in Iloilo.• He became a rich businessman.• He developed Philippine sugar industry.

Rise of banks

• First bank was introduced to the Philippines by the Spaniards

• Obras Pias (good works) System• Interest was use for charitable works• Francisco Rodriguez (1830)• He founded the first Filipino Quarke (protestant) who lived

in the England• Bank of the Philippine Islands (BPI).• Oldest existing bank in the Philippines.• It started in 1851 as Banko Español• 1862- Monte de Piedad Saving Bank

Improvements of Transportation and Communications. (19th Century)

• 1891- British build the first railroad

• Manila to Dagupan• Feb. 1, 1859 First postage

stamp• 1854- First monthly mail• From Manila to Hong kong• 1783- First telegraph• 1890- First telephone

Social classes

• Upper class• Middle class• Lower class

Prizes and Exhibitions

• During the Spanish times the Philippines joined many international exhibitions or fairs abroad• Philippine finest products• Hemp• Cigars• Embroideries• And Art works

Historical Values

• There was no great development during the reign of Spain• Spaniards mostly benefited from the wealth of the country,

while rich Filipinos copied their arrogant snobbish and aristocratic ways.

• There was development in the land ownership, abolition of history, new plants and animals, new industries, new trade and companies, new banks, better roads and bridges, modern electricity, railways and ships, the new middle class, and prizes and exhibitions.

• However, oppression caused the Filipinos unhappy and led into revolt and revolution later on.

Thanks for Listening!!!

Faith Shines!!!Have A nice Day, Brothers and Sisters!!!